IFRS 9, Impairment of Non-Financial Assets, Income Taxes - Notes to Financials

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Answer 1:
As per the notes to the financials of the company:
The company has applied IFRS 9 which deals with the financial instruments. During the
period of July, 2014, the IASB released the final version of this accounting standard which
replaces the accounting standard IAS 39 that deals with the financial instruments, recognition
and the measurement. This new accounting standard includes the introduction of a new
approach for the purposes of classifying the financial assets that are based upon the way in
which the company manages its financial assets and also characterises of the cash flows of
the financial assets thereby replacing the rules as have been laid down under IAS 39. The
majority of the rules and the requirements under the IAS 39 goes in for the classification and
the measurement of the financial liabilities that have bene carried forward under IFRS 9. This
standard also introduces the new model of hedge accounting which is more inclines towards
achieving the objectives of the management along with the new and expected model of the
credit loss for the purposes of calculating the impairment on the financial assets of the
company which again replaces the loss model under IAS 39. IFRS 9 is effective for the
period which begins on April 1, 2018. For the company. The management and the auditors of
the company have concluded that the adoption of this standard on accounting would have no
impact on the consolidated financial statements that have been prepared.
The second disclosure is that of the impairment of the non-financial assets. The company
conducts an impairment testing for goodwill which depends upon the internal estimates of the
fair values less any costs incurred towards the disposal of the asset and also goes on to use the
various valuation models such as the discounted cash flows model. The main assumptions on
which the managed bases its determination of the fair values less any costs incurred towards
the disposal of the asset include the estimate growth rates the rate at which the company pays

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taxes and the post-tax rates of discounts. These are the estimates that include the methods that
have bene used and that are expected to have a material impact over the respective values and
this affects the amount of the goodwill that has been impaired. Whenever there is any
property, plant or equipment or any other intangible assets that are stated for impairment,
then the recoverable amount of those assets are determination which includes the use of
various estimates made by the management and this is expected to have a material effect on
the respective values and would ultimately affect the amount of the impairment.
The third note relates with the income taxes. The company is subject to many income tax
laws in a number of different jurisdictions. This is the judgment which is required for the
purposes of the determination of the provision of the income taxes. The determination of the
tax liabilities and the assets includes the involvement of the uncertainties in the interpretation
of the various complex tax regulations. The potential taxation liabilities is based upon the
weighted average probability of the various possible outcomes. The difference between the
actual results and the estimates that have been made affects the liability of the income taxes
and the deferred tax liabilities in the period in which there is a determination with regard to
the taxation liabilities has been made. The amount of the deferred tax assets has been
recognised to the extent it is likely that the taxable profit is as against the losses that could be
utilised. There are some major judgments that are required for the purposes of determining
the amount of the deferred tax assets that could be recognised. This is based upon the likely
timing and on the level of the future taxable profits put together with the future taxation
planning strategies. The amount of the deferred tax assets or the liabilities undergo a change
when there is an existence of any future strategy that affects the timing difference of the
various assets or the liabilities (Annual report, 2018).
Answer 2: